Written By- Kathleen Schroeder, CFP®
I’m not a betting lady (I am a financial planner after all!), but I’d be willing to bet that you’ve gotten at least one notice in the last few years that your information has been compromised. Big name players like Ticketmaster, TIAA-CREF, Dell, and 23andMe are just a few familiar names to be impacted since 2023.
Getting notified of a breach can feel scary and stressful and may leave you feeling helpless… I can speak from experience. Just this year alone, I’ve personally been notified of more than one security breach involving my information, and my husband and I have had two attempts to open credit in our names.
Luckily, there are steps you can take to help mitigate the potential harm of a data breach, one of the biggest being freezing your credit. A Credit Freeze will block creditors from accessing your credit reports, which will keep them from approving any new credit accounts in your name.
How do you request a Credit Freeze?
Equifax, Experian, and TransUnion are separate organizations, and your credit should be frozen with all 3. The quickest way to request a freeze is to create a log in with each website to freeze your credit. This also makes it easier in the future to unfreeze or thaw your credit (more on that in a bit!). The next fastest option is calling each organization. When requesting a freeze online or over the phone, the Credit Reporting Agencies must freeze your credit within 1 business day. You can also make the request via mail, but this is the slowest option and requires you to send your Social Security Number through the mail.
Each agency has a helpful page with a link for online sign up for a credit freeze, the phone number to call in the freeze and instructions on requesting via mail. See here: Experian, TransUnion, Equifax
What if I need to apply for credit?
Some people avoid adding a credit freeze, fearing that it will be difficult or time-consuming to unfreeze if the need to apply for new credit arises. Luckily unfreezing your credit, or scheduling a “thaw” which just temporarily lifts the credit freeze, is both fast and easy! When requested online or via phone, the freeze is lifted within 1 hour.
You will likely want to choose to thaw, rather than unfreeze your credit, as it will automatically relock your credit after the thaw period ends. Ideally, your lender can tell you which of the credit agencies they utilize, so you can just thaw your credit with that one organization. If you have created a log in, you may request a temporary thaw on the agency’s website. You may also unfreeze or schedule a thaw by calling the agency.
Below are a few final thoughts and notes.
Minor children
If you have minor children can may also (and should also!) freeze their credit. Documentation is required and instructions for each agency can be found here: Experian, TransUnion, Equifax
When a loved one passes
It’s a good idea report the passing of a relative to one of the agencies to help prevent potential identity theft. In order to report the death, you must be the surviving spouse or a legally authorized person, such as the executor of the estate. You only need to report the passing to one of the agencies. Experian allows you to upload the death certificate online, while TransUnion and Equifax require the notification in writing.
Freezing your credit is FREE
It is 100% free to freeze your credit. Each agency offers credit monitoring and other services for a cost. These are different than a credit freeze. Additionally, you will want to note or bookmark the webpage for the freeze as it may differ from the agency’s paid service site.
Your Score is Not Impacted
Adding a credit freeze does not impact your credit score. If anything, it protects it! A hard credit inquiry, even a fraudulent one, can impact your score. Placing a credit freeze prevents you from having to file a dispute to remove the fraudulent inquiry to restore your score.
Credit Monitoring
As mentioned above, credit monitoring is different from a credit freeze. This service monitors your credit and alerts you to any changes to your accounts, including closures, suspicious activity, or new accounts being opened. Credit Monitoring is a paid service, but is offered for free for a period of time by the affected organization when a security breach has occurred. We recommend enrolling in these programs if you have been affected by a security breach. Instructions on how to sign up are included in the security breach notification.
